5 Leisure and Recreation Services Stocks to Buy

In this article, we discuss the 5 leisure and recreation services stocks to buy. To read the detailed analysis of the industry, go directly to the 10 Leisure and Recreation Services Stocks to Buy.

5. Hilton Worldwide Holdings Inc. (NYSE:HLT)

Number of Hedge Fund Holders: 57

Hilton Worldwide Holdings Inc. (NYSE:HLT) is a hospitality company that operates various types of hotels under different brands, including Waldorf Astoria Hotels & Resorts, Curio Collection by Hilton, Hilton Hotels & Resorts, and others.

On April 3, Hilton Worldwide Holdings Inc. (NYSE:HLT) announced that it acquired a majority controlling interest in Sydell Group and added the NoMad brand to the company’s portfolio. The company projected the development of around 100 NoMad properties globally over time.

In our list of leisure and recreation services stocks to buy, Hilton Worldwide Holdings Inc. (NYSE:HLT) takes the fifth spot. In the fourth quarter of 2023, 57 hedge funds had stakes in the stock worth $5.188 billion. As of Q4 of 2023, Pershing Square is the top shareholder in the company and has a position worth $1.67 billion.

Pershing Square Holdings stated the following regarding Hilton Worldwide Holdings Inc. (NYSE:HLT) in its fourth quarter 2023 investor letter:

“Hilton Worldwide Holdings Inc. (NYSE:HLT) is a high-quality, asset-light, high-margin business with significant long-term growth potential. Hilton generated strong financial performance in 2023 as revenue per available room (“RevPAR”), the industry metric for same-store sales, increased 13% year over year reflecting both the continued late-cycle international recovery from COVID-related industrywide disruption and strong domestic trends. Earnings-per-share grew 27% year over year, and are now ~60% above pre-COVID-19 levels reflecting the compounded benefit of Hilton’s net unit growth, excellent cost control, and share buybacks.

Near-term industry trends remain favorable, which will continue to benefit from continued robust RevPAR growth balanced across still improving occupancy trends and continued strength in average daily room rate (“ADR”). While aggregate occupancy remains modestly below pre-COVID levels, it is poised to improve in 2024 driven by acceleration in business transient travel, record group demand, and strong international growth. Similarly, ADR growth is likely to continue given strong demand against a backdrop of record low domestic supply growth of net new rooms. As a result, 2024 RevPAR growth is likely to remain above long-term trends. For context, STR Global, the industry’s leading hospitality research firm, is projecting 2024 U.S. RevPAR growth of 4%, while international RevPAR growth is likely to be even stronger…” (Click here to read the full text)

4. Caesars Entertainment, Inc. (NASDAQ:CZR)

Number of Hedge Fund Holders: 65

Caesars Entertainment, Inc. (NASDAQ:CZR) is a gaming and hospitality company that operates Caesars Palace, Harrah’s, and Horseshoe, among others. 65 hedge funds held positions in Caesars Entertainment, Inc. (NASDAQ:CZR) in the fourth quarter and their stakes amounted to $1.36 billion. As of December 31, 2023, HG Vora Capital Management is the largest shareholder in the company and has a position worth $239.088 million, representing 12.21% of the investment portfolio.

On April 19, JMP Securities analyst Jordan Bender lowered the price target on Caesars Entertainment, Inc. (NASDAQ:CZR) to $62 from $65 and kept an Outperform rating on the shares.

Baron Funds stated the following regarding Caesars Entertainment, Inc. (NASDAQ:CZR) in its fourth quarter 2023 investor letter:

“In the most recent quarter, we acquired additional shares in Caesars Entertainment, Inc. (NASDAQ:CZR), the largest casino-entertainment company in the U.S. and one of the world’s most diversified casino-entertainment providers. We are big fans of CEO Tom Reeg and remain optimistic about the long-term prospects for the company.

The company operates primarily under the Caesars, Harrah’s, Horseshoe, and Eldorado brand names. The company generates approximately 50% of its cash flow from Las Vegas and 50% from regional destination markets. The company owns approximately half of its real estate and leases the other half from gaming REIT companies – Gaming and Leisure Properties, Inc. and VICI Properties Inc…” (Click here to read the full article)

3. Expedia Group, Inc. (NASDAQ:EXPE)

Number of Hedge Fund Holders: 65

Expedia Group, Inc. (NASDAQ:EXPE) is an online travel company that provides its services through Brand Expedia, Hotels.com, Vrbo, and more. The company is among our top leisure and recreation services stocks to buy.

Expedia Group, Inc. (NASDAQ:EXPE) has a consensus Buy rating among 13 analysts and its average price target of $160.56 implies an upside of 22.72% from the last price of $130.83, as of April 22.

In the fourth quarter of 2023, 65 hedge funds held positions in Expedia Group, Inc. (NASDAQ:EXPE), and their total stakes amounted to $3.905 billion. As of Q4 of 2023, ValueAct Capital is the most dominant shareholder in the company and has a position worth $645.345 million.

Chartwell Investment Partners, LLC stated the following regarding Expedia Group, Inc. (NASDAQ:EXPE) in its fourth quarter 2023 investor letter:

“Expedia Group is an online travel agency with brands including Expedia Group, Inc. (NASDAQ:EXPE), Vrbo, Hotels.com, Hotwire and Orbitz. Travel bookings improved in the quarter and the company’s initial outlook for 2024 called for accelerating revenue and earnings growth.”

2. Booking Holdings Inc. (NASDAQ:BKNG)

Number of Hedge Fund Holders: 83

Booking Holdings Inc. (NASDAQ:BKNG) is well-known in the leisure and recreation services industry as it operates Booking.com, Priceline, Agoda, KAYAK, and other platforms. In Q4 of 2023, 83 hedge funds had stakes in Booking Holdings Inc. (NASDAQ:BKNG), with total positions worth $10.269 billion. As of the fourth quarter of 2023, Fisher Asset Management is the most significant shareholder in the company with a stake worth $1.336 billion.

On April 3, B. Riley initiated coverage of Booking Holdings Inc. (NASDAQ:BKNG) with a Buy rating and a $4,400 price target.

Wedgewood Partners stated the following regarding Booking Holdings Inc. (NASDAQ:BKNG) in its first quarter 2024 investor letter:

“Booking Holdings Inc. (NASDAQ:BKNG) contributed negatively to relative performance. The Company grew bookings on their platforms +16% and reported +22% growth in adjusted operating income during their fourth quarter of 2023. We think the market is cautious about the Company’s results for 2024 because they will be lapping very high levels of growth compared to those in 2023 (full year 2023 bookings growth +24%). However, Booking’s end markets continue to be quite healthy, outside of geographies affected by war because consumers still have plenty of wallet share to re-dedicate to travel compared to pre-COVID-19 numbers. We applaud the Company as they aggressively repurchase shares at valuation levels well below the market and peers. This should serve to compound our ownership in Booking’s business, which has exceptional pro2itability.”

1. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 89

The Walt Disney Company (NYSE:DIS) is an entertainment company that operates a cruise line operation, theme parks, and resorts, including Walt Disney World Resort and Disneyland Resort, among others. The Walt Disney Company (NYSE:DIS)’s Experiences segment’s revenue increased by 7% year-over-year to $9.132 billion for the first quarter of the 2024 fiscal year.

On April 17, Reuters reported that the Anaheim city council gave its approval for The Walt Disney Company’s (NYSE:DIS) expansion plan called DisneylandForward. Under the project, the company plans on making an investment of around $1.9 billion over the next 10 years in developing theme park experiences and lodging.

The Walt Disney Company (NYSE:DIS) takes the top spot on our list of leisure and recreation services stocks to buy. The stock was part of 89 funds’ portfolios and the total stake amounted to $7.39 billion in the fourth quarter of 2023. As of Q4 of 2023, with 32.337 million shares worth $2.92 billion, Trian Partners is the biggest shareholder in the company, representing 41.67% of the firm’s portfolio.

Should you invest $1,000 in The Walt Disney Company (NYSE:DIS) right now?

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Disclosure: None. You can also look at the 20 States with the Highest Divorce Rates in the US and Cathie Wood’s Latest Stock Portfolio: Top 10 Stock Picks.

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